China’s CNPC to take 20% stake in Russia Yamal LNG project

21 June 2013 15:58[Source: ICIS news]

LONDON (ICIS)--China National Petroleum Corporation (CNPC) is to take a 20% stake in Russia’s planned 16.5m tonne/year Yamal liquefied natural gas (LNG) project, NOVATEK, the project's co-owner, said on Friday.

Under a framework deal, China’s government-controlled CNPC also agreed to take at least 3m tonnes/year of LNG from Yamal, NOVATEK said without disclosing financial details. The deal is expected to close on 1 October.

Yamal LNG, which will tap gas reserves in Siberia’s Yamal Peninsula, is currently owned by NOVATEK (80%) and France’s Total (20%).

"This agreement is a very important step in the implementation of the Yamal LNG project," said NOVATEK managing board chairman Leonid Mikhelson.

"We see CNPC as a reliable partner with considerable experience in international LNG projects, as well as a long-term buyer of LNG representing one of the fastest growing gas markets in the world," Mikhelson said.

"We are also looking forward to CNPC's significant contribution into attracting external financing for the project," he added.

NOVATEK is described as Russia's largest independent gas producer and the second-largest natural gas producer in Russia.

Earlier this year, French petrochemicals and engineering firm Technip said it would be part of a consortium that will work on Yamal's engineering and construction.